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“Pay-If-Paid” Clauses May Not Protect Contractors on Bonded Projects


As previously reported, the Massachusetts Prompt Payment Act, which, among other things, spells the demise of conditional payment provisions (commonly referred to as “pay-if-paid” clauses) on private construction projects in the Commonwealth. However, the Prompt Payment Act applies only to contracts executed on or after November 8, 2010. This means that for the next year or two, many construction disputes will continue to involve contracts with valid pay-if-paid clauses. (more)

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